Seminara v. Frank Seminara Pontiac-Buick, Inc.

618 P.2d 366, 95 N.M. 22
New Mexico Court of Appeals·Decided September 23, 1980·No. 4449·Published·Cited by 8 cases

Opinions

OPINION

ANDREWS, Judge.

Plaintiff-appellant, Frank Seminara, is the president and managing officer of defendant-appellant, Frank Seminara Pontiac Buick, Inc. Mr. Seminara was injured, when on November 24, 1972, his car was rear-ended as he was returning home with a demonstrator model of the automobiles he sold. The subsequent action filed against the third-party tortfeasor by Seminara on August 2, 1973, alleged present and future medical damages as well as pain and suffering. The action proceeded to the jury which returned a plaintiff’s verdict with a judgment for zero damages.

On August 27, 1979, Mr. Seminara filed this action against the corporation of which he is president, and its insurer, Fireman’s Fund. The complaint alleged an accident arising out of his employment, that the disability he complained of was a natural consequence of the accident, and that defendant employer had actual notice of both the injury and some $3,000 in medical bills. The answer which defendants-appellees filed set forth a variety of defenses-included where: (1) failure to state a claim; (2) injury not within the scope of employment; (3) failure to give proper notice; and, (4) laches, waiver or estoppel.

In a motion for summary judgment, the trial court held that collateral estoppel barred plaintiff’s recovery-in effect, that plaintiff had sought his relief from the third-party tortfeasor, and that the relief he received barred any recovery under workmen’s compensation.

There are three major workmen’s compensation schemes which provide for election of remedies in third-party tortfeasor situations, one allowing the option with the claimant and the other two forcing election of remedies:

(1) Where the claimant is allowed to proceed against the tortfeasor (third-party) and also seek compensation benefits.1
(2) Where the claimant is allowed the election of either remedy, (i. e., where a tort suit bars compensation claims, and where compensation claims bar a tort suit); 2 and
(3) The occasional situation where the claimant is given only one option, (i. e. in Texas, a prior tort suit against the third party bars a later compensation claim, but a compensation claim does not bar the subsequent tort action.)3

In New Mexico we have a form of the third. Our election has been held to work one way-it bars a subsequent compensation action once a tort suit has been brought.

The general rule is that where a claimant has sought relief from a third-party tortfeasor, “the amount of the recovery is for the full loss or detriment suffered by the injured party and makes him financially whole.” Castro v. Bass, 74 N.M. 254, 258, 392 P.2d 667 (1964). Thus, any subsequent compensation claim is barred. However, a twist has developed. Our statute has been held only to bar the later compensation action where the claimant wins the tort action.4 As stated in Brown v. Arapahoe Drilling, 70 N.M. 99, 370 P.2d 816:

* * * Admittedly, if Brown’s administrator had recovered in the third-party action, White v. New Mexico Highway Commission, supra, would be controlling; but here there was a judgment for the defendant, entered after a jury trial, and therefore no one has ‘received payment or recovered damages’ and also claimed compensation. The statute plainly intends to prevent dual recovery, and we do not believe that an erroneous selection or election of remedy should be construed as forever terminating the right to receive the benefits of the Workmen’s Compensation Act. (Emphasis added.)

Plaintiff-appellant argues that Brown v. Arapahoe Drilling, supra, supports the proposition that “since there had been no recovery at all against the third party [in the instant action] any workmen’s compensation from the employer would hardly be a double recovery. Since the statute seeks to prevent double recovery, Brown, supra, in such cases there should be an award of compensation. An analysis of the underlying rationale of Castro v. Bass, supra, sheds .some light on this proposition:

[B]y accepting compensation which in no sense is considered as representing full compensation for injuries, no election of remedies could have been intended by the legislature. On the other hand, when damages are sought and recovered from the tort-feasor, the amount of the recovery is for the full loss or detriment suffered by the injured party and makes him financially whole. See Jackson v. Southwestern Public Service Company, 66 N.M. 458, 349 P.2d 1029; 15 Am.Jur. 400, Damages, § 12; 25 C.J.S. damages § 17, p. 471. Accordingly, a different result follows, and as was said in Kandelin v. Lee Moor Contracting Co., supra, § 59-10-25, N.M. S.A.1953, is intended to deny an injured workman both compensation from his employer and a recovery from the third party, and if he has collected from the negligent party causing the injury he cannot thereafter recover compensation. (Emphasis added.)

Id. at 74 N.M. 258, 392 P.2d 667.

Thus, although plaintiff’s argument is persuasive, it is not as clear as it appears on its face. In the Brown case, there was a judgment against the claimant. The decision for the defendant meant that there had been no award of damages. This may be a critical distinction-for in that case the claimant had never been awarded the fair value of his injuries. In the instant action there was a decision for the claimant where the jury did award what it felt was the full value of injuries.

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Seminara v. Frank Seminara Pontiac-Buick, Inc., 618 P.2d 366, 95 N.M. 22 (N.M. Ct. App. 1980).

618 P.2d 366 (Seminara v. Frank Seminara Pontiac-Buick, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Seminara v. Frank Seminara Pontiac-Buick, Inc.
618 P.2d 366 (New Mexico Court of Appeals, 1980)